Terawatt Holdings pledged all Dynegy Inc. shares it owns and their proceeds as collateral to secure its obligations under a margin loan agreement.
Terawatt, an affiliate of Energy Capital Partners LLC, borrowed $90 million under the margin loan agreement, according to a March 6 filing. Terawatt will reduce its ownership of Dynegy common stock to less than 10% from 14.88% before the closing of the proposed $5.6 billion buyout of Calpine Corp. by a group of investors.
Dynegy is in the middle of a $10.57 billion all-stock merger deal with Vistra Energy Corp.
UBS AG, London Branch, serves as administrative agent, collateral agent and calculation agent for the loan agreement.
